## **SISTERS OF THE HOLY FAMILY**
**TRUSTEES’ REPORT AND FINANCIAL STATEMENTS AT 31 DECEMBER 2022** Registered Charity No. 233108
Haysmacintyre LLP Chartered Accountants Registered Auditors London
## **CONTENTS**
|**REFERENCE AND ADMINISTRATIVE DETAILS**|**1-2**|
|---|---|
|**TRUSTEES’ ANNUAL REPORT**|**1-25**|
|**Governance, structure and management**|**3**|
|**Mission and Objectives**||
|Worship and Prayer|**4-5**|
|Social and Pastoral Work|**6-8**|
|The Support of Overseas Missionary and Development Work|**8-9**|
|Caring for the Elderly Members of the Congregation|**10-11**|
|Grant Making|**12-14**|
|Number of hours of volunteered work by members of the charity|**14**|
|Individual case profile of a Lay Holy Family member in mission|**15**|
|**FINANCIAL REVIEW**|**16-17**|
|Independent Auditor’s Report|**24-25**|
|Statement of financial activities|**26**|
|Balance sheet|**27**|
|Cash flow statement|**28**|
|Notes to the financial statements|**32-39**|
|**RISK MANAGEMENT AND POLICIES**||
|Risk Management|**18-19**|
|Safeguarding|**20**|
|Fundraising Policy|**21**|
|Data Protection Policy|**21**|
|Ethical Policy|**22**|
|Principal Accounting Policies|**29-31**|
|**FUTURE PLANS**|**22**|
|**TRUSTEES’ RESPONSIBILITIES**|**23**|
## **SISTERS OF THE HOLY FAMILY**
## **LEGAL AND ADMINISTRATIVE DETAILS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
**TITLE OF CHARITY** Sisters of the Holy Family (sometimes known as Sisters of the Holy Family of Villefranche or of Saint Emilie) **TRUSTEES** Sister Irena Madej Sister Mary Brohan Sister Mary Josephine Harney Sister Kathleen O’Donnell **SECTOR SUPERIOR** Sister Irena Madej **PRINCIPAL ADDRESS** 35 & 36 Albert Square London SW8 1BZ Telephone: 020 7582 2016 Fax: 020 7735 6568 Website: www.holyfamilysisters.org.uk **CHARITY REGISTRATION NUMBER 233108 GOVERNING INSTRUMENT Trust Deed dated 1 May 1964** (as amended 1997) **NAMED CORRESPONDENT Mr David Clark & ACCOUNTANT** 1[st] Floor, Church House 61 College Road Bromley. BR1 3QG **AUDITORS Haysmacintyre LLP** 10 Queen Street Place London EC4R 1AG **BANKERS National Westminster Bank PLC** PO Box 7929 91 Westminster Bridge Road London SE1 7HW **SOLICITORS Druces LLP** Salisbury House London wall London EC2M 5PS **INVESTMENT MANAGERS Brewin Dolphin** 12 Smithfield Street London EC1A 9BD
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**SISTERS OF THE HOLY FAMILY**
**LEGAL AND ADMINISTRATIVE DETAILS (continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **INVESTMENT POWERS**
## **THE TRUST OF THE CHARITY**
Under the charity’s Trust Deed the Trustees’ power of investment authorised by law for the investment of Trust funds.
To apply Trust property either as capital or as income for such charitable purposes as shall advance the religious and other charitable work of the Sector of the Congregation (Sisters of the Holy Family) as the Trustees with the approval of the Sector Leader shall from time to time think fit and if at any time the Congregation shall cease to exist or to carry on religious or other charitable work in such Sector then for such lawful charitable purposes connected with the advancement of the Roman Catholic religion as the Trustees shall determine
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**SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
The Trustees are pleased to present the report and accounts for the year ended 31st December 2022 of the English Sector of the Congregation of the Sisters of the Holy Family Charitable Trust on which the assets of the English Sector are held.
They have been prepared in accordance of the requirements of the Charities Act 2011 and the statement of recommended practice “Accounting and Reporting by Charities” (SORP 2019).
## **INTRODUCTION**
The Congregation of the Sisters of the Holy Family of Saint Emilie (Villefranche) is an International Roman Catholic Religious Congregation supporting 310 sisters worldwide. It was founded in Villefranche-de-Rouergue, France in 1816.
## **GOVERNANCE, STRUCTURE and MANAGEMENT**
In terms of Canon Law, the Congregation is governed at an international level by the Superior General and her General Council in Villefranche-de-Rouergue, France. They are elected every five years at a General Chapter with representatives of all Sectors of the Congregation. The English Sector is administered by an Animation Team, who are elected by the members of the English Sector in consultation with the General Council. The Legal Representative of the Animation Team is a trustee.
Members of the Animation Team are chosen for their ability to stimulate and coordinate participation, initiative, and the activities of the sisters throughout Great Britain and Ireland. They help to ensure ongoing formation of its members and to secure the best use of personnel and skills. As with many other Congregations we are in the process of reviewing our Structures of Governance in order to find the best way to facilitate our mission and maximise our potential with decreasing numbers. Our International General Chapter took place in France in 2022 and since then a new constitution has been sent to Rome for approval and will hopefully lead to a more streamlined approach to our structures of Governance.
At present each Community of the English/ Irish Sector is governed by a local Superior who is appointed by the Animation Team in consultation with the General Council. A member of the Animation Team is required to visit each Community at least once a year, and throughout the year there is a system of accountability operational within the Sector to ensure that the Animation Team are aware of the progress and development of the different ministries carried out by the members of the Sector. A visit by the Superior General or her Councillors is made to the English Sector at least once every three years.
The Sector comprises 18 Professed Sisters who are accommodated in 3 houses. These houses are situated in the South and Southwest of England and one in the Republic of Ireland. The community houses are located in those areas where it is believed that the members can provide care for the pastoral and social needs of the catholic parishes and local communities in which they are inserted. As stated above each community has a local leader appointed by the Animation Team. The local leader is responsible for the care of the sisters in her community as well as ensuring that the community as far as possible responds to the most pertinent needs of the locality in which they are inserted. All local leaders meet each year with the Trustees and the Sector Animation Team to discuss developments, future plans and strategies.
In terms of civil law, the charity is governed by a Trust Deed dated 1st May 1964 (amended in 1997) and is a registered charity: Charity Registration No.233108. Two Trustees are currently members of the Animation Team, the other Trustees oversee the communities in Exmouth and Knock, Ireland. As all the trustees are members of the Congregation of the Holy Family Sisters, they have a detailed knowledge of the work of the charity and of its structure. Their living and personal costs are borne by the charity. However, they receive no remuneration or expenses for their services as Trustees.
The names of the Trustees who served during the year are set out as part of the reference and administrative details on page 1 of this annual report and accounts.
## **Trustees’ Responsibilities**
The Trustees are ultimately responsible for the policies, activities and assets of the Charity. The Trustees meet on a regular basis during the year to review developments regarding the Charity and its activities and take important decisions as and when necessary. When required the Trustees seek advice and support from the Charity’s professional advisers, including property consultants, investment managers, solicitors and accountants. Trustees attend regular training throughout the year both internally and externally.
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**SISTERS OF THE HOLY FAMILY**
**TRUSTEES REPORT (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **MISSION, OBJECTIVES and SPECIFIC POLICIES**
The object of the English Irish Sector of the Congregation of the Holy Family Sisters Charitable Trust, as set out in its governing document, is the furtherance of the Roman Catholic faith and lawful charitable purposes and works connected with it.
By caring for individual members of the Congregation throughout their lives, the charity aims to enable and support the sisters to live out their faith and to put that faith into practice through a wide variety of religious ministries and other charitable works.
## **PUBLIC BENEFIT**
Through their ministry the members of the Holy Family Sisters are involved in a range of activities including education, pastoral support, and chaplaincy. We also network with other charities and are involved in grant giving to those charities which are close to our own charism and are of benefit to the public.
The trustees confirm that when reviewing the charity’s aims and objectives and plans they have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit and in particular to its supplementary guidance on the advancement of religion.
We are conscious of our present reserves and of the need to use these for the good of the public whilst continuing to meet the aims and purposes of our own Charity. We meet constantly to assess existing projects, research new ventures, and allocate funds appropriately.
## **ACHIEVMENTS AND PERFORMANCE IN MISSION**
The religious and charitable works of individual members of the Congregation can be divided into five areas:
1. Worship and Prayer,
2. Social and Pastoral Work
3. The support of Overseas Missionary and Development Work.
4. Caring for the Elderly Members of the Congregation
5. Grant Making
Each of these is considered in turn below ending with a particular area of achievement or impact made for the past year.
## **1. WORSHIP AND PRAYER**
- Members of the Congregation have been given the opportunity for private worship as well as the opportunity to continue to develop their knowledge of their faith in Christ and the Church through prayer, study of the Gospel and spiritual development. They are encouraged to make a private retreat annually.
- In addition, members of the Congregation continue to encourage others within their local parish communities to join them in prayer and meditation and aim to provide spiritual direction and guidance for those who ask. They run study courses for those who wish to develop their knowledge in scripture and catechesis
- The members make themselves available by being present within the parish communities and their locality to listen in times of need and to use the telephone for prayer ministry especially for those who are in crisis and want prayer.
- They also aim to build up the local parish communities by participating in the celebration of the liturgy with others and through their animation of prayer groups and church services. They offer themselves for ministry in the parishes in which they are inserted whenever possible.
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**SISTERS OF THE HOLY FAMILY**
**TRUSTEES REPORT (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **ACHIEVEMENT AND PERFORMANCE IN MISSION (continued)**
## **1. WORSHIP AND PRAYER (continued)**
Through their ministry they:
- Promote the values and vision set out in the Gospel including the promotion of human dignity, respect of different cultures, working for a society based on justice and peace and encouraging care and respect for all creation.
- Host prayer groups in their own premises and elsewhere thus giving members of the public from all walks of life the opportunity to escape the stresses of everyday life for a short time and take time for quiet contemplation and reflection and the chance to study and consider the Gospel.
- Provide retreats where those who attend can reflect in a peaceful atmosphere as well as giving access throughout the year to ‘sacred space’ in our houses for people to pray and find peace.
-
-
-
-
-
- Encourage family prayer through parish catechesis.
- Animate liturgies and teach and prepare lay people to take up the role of spiritual animation.
- Console and counsel people by telephone.
- Provide religious education as well as train and supervise new catechists.
- Pray and visit with those who are housebound, sick or dying.
## **PARTICULAR ACHIEVEMENTS FOR THIS YEAR IN WORSHIP AND PRAYER**
- With most of the Covid restrictions lifted we were able to finally lead a group of parishioners and Lay Members on a Pilgrimage to the Holy Land. During our time of Pilgrimage we were able to renew our links with Bethlehem University and make further enquiries about the possibility of funding a scholarship for one of their students.
- Bible study courses were run during the Advent and Lenten Seasons as well as other days for interested parishioners.
- Lay Holy Family members attended several days of prayer and training.
- Our annual founder’s day was celebrated with a mini retreat which included Mass followed by a celebratory meal.
- Retreats at various venues were attended by members of the Congregation.
- Our Women’s Group were able to get together twice during the year with the intention of making more detailed plans for the coming year.
- Our Chaplain Fr. Gerry Mulvihill, continues to celebrate Mass each day for our elderly sisters as well as animating other spiritual celebrations. This provides great spiritual support and comfort to the community at Stockwell. Interested parishioners were introduced by Fr. Mulvihill to a new style of praying on the Scriptures called ‘Lectio Divina’.
- Children and Adult parishioners took part in both Advent and Lenten Dramas.
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**SISTERS OF THE HOLY FAMILY**
**TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Challenges for the Future with regards to Worship and Prayer**
- ❖ Challenges remain much the same as last year especially as regards finding ways to make our premises more open to parishioners and others interested in having quiet contemplative experiences. Small steps have been taken to encourage this, but we hope to make it a stronger focus for the year ahead by advertising our space in local parishes.
- ❖ The need to build a spiritual programme on aging for our elderly sisters and for local housebound people that we visit.
- ❖ The need to fund a local youth worker has been considered but numbers have dropped so dramatically in the parish since Covid that this may not be the best use of resources. What can we, as a Congregation of Sisters founded for the care of youth in our localities, do to assist the spiritual and social well-being of our youth is a question we need to keep before us.
- ❖ The community in Knock are presently considering a new project in conjunction with the local parish to assist the youth of the area in their spiritual development.
- ❖ To continue to find ways to work at interfaith relations with our asylum seekers in Emilie House.
## **2. SOCIAL AND PASTORAL WORK**
Members of the Congregation who still remain active are involved in various forms of social and pastoral work. These include parish ministry and the co-ordination of programmes that promote the common good and justice in society. These programmes involve both adults and children. This is regarded by the members as being increasingly important in our present-day society but as our numbers drop and age levels rise it is obviously becoming more difficult for us to manage these ministries. We are discovering that the best way forward for us in this area is to sponsor other groups and individuals to carry out this mission or for us and thus we are networking more with other charities such as the Jesuit Refugee Service, Chain of Hope, and others.
As members of the Holy Family Congregation we are eager to promote the value of family life. For this reason, we continue to open our premises to ‘Marriage Care’. In former years this group provided counselling on our premises but now are more involved with preparing couples for their forthcoming marriages in the Catholic Church.
Members also carry out chaplaincy work in care homes. They are engaged in visiting the sick, the lonely and housebound, the marginalised and emotionally deprived.
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## **SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **2. SOCIAL AND PASTORAL WORK (continued)**
**MARRIAGE CARE**
**WELCOMING SICK CHILDREN**
**GROUPS FOR SENIORS**
- The members aim to help in particular, the poor and disadvantaged in society regardless of their faith, gender, or individual circumstances. Part of this involves the conscientisation of people within our own parishes to activate for change and for the promotion of a more just society. We support and attend various organisations who promote justice issues in our society.
- Conscious of the facilities we have in our various houses we are trying to open them up to various local and national needs. This has led us to the housing of refugees, providing accommodation to particular needs such as priests in busy ministries and families in need of short holiday breaks.
- We are also making our premises available for local groups such as local parish groups and women’s support groups.
- Several Sisters are engaged in the formation programmes of the Lay Holy Family members who will eventually work alongside the Holy Family Sisters in our pastoral and social care activities.
- We have been able to resume our mission of hosting families from ‘Chain of Hope’. This organisation brings children and their parents from other countries to London for heart surgery and ask individuals and groups such as ourselves to host the family during their recuperation before returning to their own countries.
## **THE OBJECTIVES OF THE TRUSTEES IN THIS AREA OF SOCIAL AND PASTORAL WORK INCLUDE:**
- Enabling members of the Congregation to carry out meaningful social and pastoral work within the community, after assessing the needs of the local area.
- Encouraging and motivating members to work with and assist the poor, elderly and marginalised.
- Discerning new opportunities for our Charity to continue our engagement with the poor and disadvantaged and reviewing how we might respond internally or in collaboration with other agencies and charities within the areas of social and pastoral care.
- Recognising that our Central House may in the future be too large for our own needs we are considering how we might adapt the premises to assist charity workers and low paid key workers. The provision of small flats with low cost rent is something we are moving ahead with.
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**SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **PARTICULAR ACHIEVEMENTS THIS YEAR IN SOCIAL AND PASTORAL WORK**
- ➢ We continue to build our relationships with the asylum seekers in Emilie House and have hosted several events to which they have been invited and have been hosted by them who are now resident on our premises.
- ➢ We have moved forward with the process for the development of housing in our premises at Albert Square. These flats are intended for charity workers on low salaries and will be available at low-cost rent. As housing is such an issue in London especially for young people, we have reflected that this might be a particular need to which we could respond
- ➢ The Knock Community have instigated a programme for Youth in conjunction with Knock Shrine Community
## **CHALLENGES FOR THE FUTURE WITH REGARDS TO PASTORAL CARE**
- ➢ The issue of having less and less members to carry out direct ministry in pastoral and social care.
- ➢ The challenge of involving Lay Holy Family members in our ministry to a greater degree.
- ➢ Enabling others through our grant making process.
- ➢ Reviewing the use of our Central House for more pastoral and social initiatives in the future.
## **3. THE SUPPORT OF OVERSEAS MISSIONARY and DEVELOPMENT WORK**
The Charity provides financial support for our overseas missions and for the development programmes for the disadvantaged. The Congregation’s missions are in Africa, Asia, the Middle East and Latin America. The missions are under the control of members of the Congregation and the financial support is used to meet the personal and living expenses of the members as well as their missionary activities. These include schools, hospitals, care of street children and those who need residential care, clinics, chaplaincy work and helping the disadvantaged and marginalized in different capacities. A fund of £30,000 is transferred on an annual basis to the General Council Fund in Villefranche de Rouergue, France to be distributed when required to the various mission stations. Alongside this grant various other grants are given as required.
## **ACHIEVEMENT AND PERFORMANCE IN THE SUPPORT OF OVERSEAS MISSIONARY AND DEVELOPMENT WORK**
During the early months of 2020 the Trustees were working with our financial consultants to set up a development fund for our overseas projects. This has not now been finalized and from 2023 we intend to send £100,000 to our central fund in our Mother House in France for the various needs.
We will ensure that these projects are monitored by our own community members and that we will receive regular feedback and financial updates.
## **LEBANON**
Lebanon has continued to suffer from economic and financial crises and the daily difficulties of our sisters and the people they work with are multiple. In response to their request for further assistance the Trustees made the decision to send another substantial donation of £50,000 in June 2022.
Our schools in the Lebanon educate both boys and girls in a multifaith environment. They are very keen on the development of the whole human person and the equality of both male and female students. Many of the students come from families with financial difficulty and this is increasing with the present socio-economic crisis.
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**SISTERS OF THE HOLY FAMILY**
**TRUSTEES REPORT (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **ACHIEVEMENT AND PERFORMANCE IN THE SUPPORT OF OVERSEAS MISSIONARY AND DEVELOPMENT WORK**
## **LEBANON (continued)**
Since sending the most recent donation the sisters wrote to inform us that the amount donated will be used equally for the schools of Jounieh and Fanar with £25,000 to fund specific projects for each school. And that they be communicating titles and details of these projects. A particular need this year has been the financing of petrol for staff members as public transport in Lebanon is in a state of collapse and school minibuses must be used to transport staff and students.
Some of the funds were also used for the payment of staff members and for assisting students whose families are in great financial difficulties at this time.
## **ASSISTANCE WITH TRANSPORT COSTS FOR LAY HOLY FAMILY MEMBERS ATTENDING OUR GENERAL CHAPTER**
Our General Council wrote requesting our assistance with the finance for our Lay Holy Family Members to travel from our overseas communities to the General Chapter in France. Our work with Lay Holy Family Members is of increasing importance for us and one way in which we envisage that the Congregation will be able to fulfil its mission in the future.
In response we funded one Lay Holy Member from Brazil at a cost of £1,335 and one Lay Member from Lebanon at a cost of £1,161.
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**SISTERS OF THE HOLY FAMILY TRUSTEES REPORT (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
**3. CARING FOR THE ELDERLY MEMBERS OF THE CONGREGATION**
**----- Start of picture text -----**
Age Profile
31 December 2022
8
7
6
5
4
3
2
1
0
30-39 40-49 50-59 60-69 70-79 80-89 90+
18 Sisters
**----- End of picture text -----**
In common with many religious congregations in Great Britain, the age profile of the members of our Congregation is increasing as existing members grow older and the number of new vocations becomes minimal. The age profile of the Sector is shown graphically above:
The Congregation has an obligation, both moral and legal, to provide care for its members, none of whom has resources of her own and all of whom have devoted a significant part of their lives to education, pastoral ministry, chaplaincy, care of the sick, and elderly, the poor and marginalized in society. As the age profile of the Congregation increases so too does the need to provide increasingly more expensive care for the members. The Congregation tries to do this for as long as possible in our own communities, however, seven members are now receiving full time care in privately owned nursing homes. As a consequence, of the need to provide residential nursing care for members over the coming decades the Trustees are giving careful consideration to the amount of money we reserve for care of elderly members whilst maintaining a missionary dynamic to our financial outlay.
In this regard, the objectives of the Trustees over the next few years include:
- Ensuring all members of the Congregation receive the high level of care they require to provide them with the quality of life they rightly expect.
- Ensuring that our existing community houses have been adapted to meet the needs of the elderly. We will continue to enable and encourage all members of the Congregation to continue living in community for as long as possible and where feasible continuing with a ministry.
- We continue to consider how our buildings that are used for the care of the elderly sisters may have a multipurpose dimension and thus be more open to the wider needs of the locality.
- Ensuring that the members retain a pastoral and missionary outlook even in retirement.
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## **SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **PARTICULAR ACHIEVEMENTS THIS YEAR IN CARING FOR THE ELDERLY MEMBERS**
- ➢ Employment of night nurses at Stockwell for the sisters diagnosed with dementia. This has made a significant difference to the life of the community.
- ➢ Updating of care plans for each of our elderly members who are still living in community. Increasing the discussion with them as regards the various aspects of their lives that include the spiritual, physical, emotional, and social.
In the communities where our elderly members are still resident, we ensure that all personal care facilities are bought in including chiropodists, hairdressers and care assistants where necessary.
We try to keep in constant contact with their family members and with their friends and associates from their past ministries.
- ➢ We encouraged more of our Lay Holy Family to be involved with the social care of our elderly residents. One is volunteering regularly to do activities with the elderly sisters.
- ➢ We encouraged our elderly members to continue their ministry through phone calls and letters to the housebound and elderly.
- ➢ The new resident chaplain continues to develop and enliven the spiritual life of the community members in Stockwell.
**Care of the environment**
**----- Start of picture text -----**
Outings for our Elderly Members
**----- End of picture text -----**
**Recreational Activities**
## **CHALLENGES FOR THE FUTURE WITH REGARDS TO CARE OF ELDERLY MEMBERS**
Transport of members to hospital and other appointments.
Finding suitable accommodation for those who eventually need residential care.
Ensuring that the members have adequate social and occupational activities to suit their needs, whilst still living in community.
Keeping contact with the families of members.
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**SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **5. GRANT MAKING**
As our members age and we have less ability to be directly involved in mission activities we are eager to use our financial resources to assist other groups who have a similar ethos to ourselves and who are engaged in charitable projects. The Trustees are constantly reviewing various projects that we feel able to assist. Listed below are those that we have decided to respond to at this point in time in line with our Grant Making Policy.
## **ACHIEVEMENT AND PERFORMANCE IN GRANT MAKING**
- Each year we respond to various request from assistance from our own Congregation of the Holy Family Sisters. This year alongside our annual grant of £30,000 to our **General Fund** an additional £50,000 was given to our sisters in the Lebanon to help with various projects and essential updates at this time of crisis– see report above in the section on support of overseas missionary and development work. The Trustees have also made the decision that in future years we will set aside £100,000 for the General Fund and this will be managed by our General Council who have a better understanding of all the needs of the Congregation throughout the world. The projects to which our money is sent will be monitored by the Trustees in the UK.
- Our project with **Asylum Seekers at Emilie House** in conjunction with the Jesuit Refugee Service continues. Our particular contribution is to provide the premises rent free to JRS who run the project as well as fund the costs. The house is able to accommodate up to 10 single asylum seekers. The project will be supported by us each year with a grant of £80,000.
- We are delighted that we have good communication with the residents and meet frequently for celebrations.
- **Margaret Clitherow Trust**
- We continue to support the above charity which seeks to serve marginalized primarily those of an ethnic Traveller background, through improving their access to statutory, legal and other services, providing pastoral support, and other such activities.
The Trustees once again made the decision to continue funding this charity with a donation of £40,000 per annum This will enable them to expand their programme and will allow them to fulfil their various aims such as advocating for educational opportunities for Gypsy Roma and Traveller children.
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**SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **5. GRANT MAKING (continued)**
## **ACHIEVEMENT AND PERFORMANCE IN GRANT MAKING (continued)**
We continued with our grant of £30,000 to Saint Anne’s School Vauxhall where the children from our local parish and surrounding parishes attend. We are happy to be involved in local education projects in some way as it is so close to the ethos of our Congregation and was the primary motivation of our foundress.
The school manager wrote detailing how the money has been used as well as their future plans for the school. A summary of which is below:
_Since receipt of the funding, it has been used for specific projects directly benefitting our children:_
_An additional teacher in year 5 was engaged to raise attainment and progress. This had appropriate impact, the children made good progress from their starting points and some made rapid progress. This allowed us to close the gap in attainment levels._
_After Covid the funding was used to deliver low children to teacher ratios to ensure, high quality teaching. This was done by engaging two additional teachers. The year groups were split into three classes, significantly reducing the number of children in each class, this reduced teacher to pupil ration and significantly impacted on attainment and progress._
_Mrs Davis, as substantive Headteacher, did not feel it appropriate to utilise the funding before she retired in August 2022, and Mrs Dawes, as Interim Headteacher from 1[st] September 2022 to 31[st] August 2023 has also not utilised the funding. The Governors have appointed Mr Peter Hilton as a new substantive Headteacher from 1[st] September 2023 who we are sure will have great plans for the school and be delighted to have the opportunity to find a special project for such unique income that will benefit our children. We very much look forward to introducing you to Mr Hilton in the autumn term._
_We would like to reassure the trustees that all funds have been ring fenced, and carefully accounted for. Any surplus balance remaining at the end of the financial year has been ring fenced and deferred to the next financial year, ensuring it is protected for specific projects._
_We are sure that under the leadership of Mr Hilton, the school will remain an honourable custodian of this precious funding, we are so fortunate to have received._
_Best Wishes Marie Dunbar_ **School Business Manager**
St Anne’s Catholic Primary School, 6 Durham Street, London, SE11 5JA
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**SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **ACHIEVEMENT AND PERFORMANCE IN GRANT MAKING (continued)**
- ➢ Smaller Grants were given to various groups including £1,000 to the fund for the retired and elderly clergy of the Diocese of Southwark who are no longer in active ministry and are in need of assistance and support.
- ➢ Grant of £,1800 for Saint Francis de Sales and Saint Gertrude’s Church Stockwell for the hiring of an organist to promote good music and singing in the liturgy of the parish.
- ➢ Provision of food for local families struggling with cost of living crisis.
## **CHALLENGES FOR THE FUTURE WITH REGARDS TO GRANT MAKING**
- ➢ The review of projects takes more time as well as the process of ensuring that the projects themselves fall within the objectives of the charity and are in line with our religious charism.
- ➢ There are many calls and demands on us due to the many issues and problems that our Congregation and world is facing. Recognising that the discernment process for issuing grants is, therefore, increasingly important for our Trustees is essential. We now have many calls and demands made upon us due to the current economic situation in our localities, globally and within our Congregation. We need to be able to prioritise those projects that we can support now and into the future.
- ➢ In house training to ensure that we know how to monitor and follow up on projects.
## **NUMBER OF HOURS OF VOLUNTEERED WORK BY MEMBERS OF THE CHARITY**
||Area|Number
of
Volunteers|Hours
volunteered
Per week|
|---|---|---|---|
|Throughout the year the
members of the Congregation
give their time to assist in
various educational and social
projects concentrating
especially on the marginalised
and those caught in the cycle
of poverty.
The majority of members
receive no financial reward for
this work which contributes to
the overall achievement of the
Charity’s objectives.
In addition, members are
involved in administering the
work of the Congregation and
the Charity. Without their
contribution the Charity would
not be able to function as
effectively or as fully as it
does.
Details of the areas in which
members gave their time are
shown in the table opposite.|Parish/Church Ministry including Catechetics,
Teaching, Eucharistic Ministers in the Local
Parish Community.
Parental Support Group
Conscientisation/ Justice and Peace|5|28|
||Visitation of the Sick
Bereavement Counselling|**5**|20|
||Visiting Nursing, /Residential Homes, Hospitals|5|20|
||Befriending individuals. Supporting families.
Corresponding with prisoners.
Community Building|
9|30|
||Counselling, Spiritual Direction|1|5|
|||0|0|
||Administration|4|86|
||**Total**|**29**|**189**|
14
## **SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **INDIVIDUAL CASE PROFILE SISTER KATHLEEN O’DONNELL:**
**HOSPITALITY CATECHETICS LAY HOLY FAMILY**
My main mission as a Sister of the Holy Family in the Central House Community is as bursar for the sector. This is a mission which I have carried out for a number of years. It involves me in organising the finances of the sector, and of our charity. I continually liaise with our Mother House in France and also with our financial advisors and support staff in this country to ensure that the finances of our charity and our properties are well organised and maintained. Recently we have employed a lay assistant to assist us in our finance department and I am presently involved in training her and assisting her in gaining the necessary knowledge she needs regarding our charity and our communities.
As Bursar I am at the service of our Sector, ensuring that each sister has all that she needs for her well-being and for the carrying out of her mission, while at the same time, being in solidarity with the poor and the marginalised. In these times of hardship for many people due to the cost of living crisis we are all very much aware of our responsibility to share with those in need. I am delighted with the various projects that we undertake for the poor and disadvantaged in our society. One of my main jobs is to ensure that these projects are evaluated and researched and that as a member of the animation team we monitor how these groups are using our funds for public benefit. I am also a Trustee of the Charity.
With the other members of the community, I take responsibility to see to the day to day running of the house to ensure that it continues to be well maintained. As our community ages more and more of our everyday work is taken up with the personal care of our elderly members. I assist with the shopping for our elderly sisters and with some personal care. I enjoy animating the liturgy in my community.
Our house at Stockwell is open to various groups including our Lay Holy Family Members and to children who travel to the UK for heart surgery. I am delighted to be able to be involved with these groups and assist in whatever way I can.
As a former teacher I am very happy to keep up an involvement with children and I act as a catechist at a neighbouring parish preparing children for First Communion and for the Sacrament of Reconciliation. I also volunteer there as a Eucharistic Minister.
I am a member of the Animation Team for the Sector and enjoy being able to visit our communities whenever I can as well as helping to envisage and plan our mission for the future years.
15
**SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FINANCIAL REVIEW**
The Sisters live in small communities and the Province has 22 professed members, the majority of whom have given their working lives to the charitable activities of the Charity. Where the work is for organisations independent of the Charity, any earnings are covenanted to the Charity. Although the average age of the membership is increasing, the number of new vocations is also increasing. Younger members, although taking up important charitable work, tend either to work within the Charity or, if working in Parish ministry, receive only a stipend. In consequence there is a general reduction in the income generated by members. The Charity has a continuing commitment to support members of the Province, many of whom continue to carry out charitable work long past the normal retirement age.
The beneficiaries of the work of the charity have the assurance that all the income of the charity must be applied for charitable purposes in furtherance of the charity’s object of furthering the Roman Catholic faith. The English Province of the Congregation of the Holy Family Sisters Charitable Trust enjoys tax exemption on income from its activities and on its investment income. The financial benefits received as a result of these exemptions are all applied for the purposes of furthering the Roman Catholic faith by enabling and supporting the sisters to live out their faith and to put that faith into practice through a wide variety of religious and other charitable works.
The Statement of Financial Activities shows that total income was lower at £750.2k compared to £1.045m in 2021. The decrease was due to last year including a gain on the sale of Fixed Assets of £351.7k, which related to the charity’s property in Tullamore, Ireland. Investment income increased, for a second consecutive year, rising to £527.2k (2021: £500k). Other voluntary income, which principally consists of Sisters’ pensions donated, remained at the same level but it is expected that this will continue to fall over the longer term, with an ageing group of sisters. As a result, there will be an increasing dependency on investment income.
Strict control has continued to be maintained over general expenditure. It increased to £985.2k after reducing to £882.3k in 2021. Costs of support of Sisters & their Ministry increased due to rises in several categories of Community expenses, most notably medical costs and salaries. Expenditure in the form of Donations and Grants in 2022 was just under £173k (2021: £170k). Support of Overseas Missions of the Congregation was broadly similar at £82.6k (2021: £82.0k. Grants to other organisations amounted to £89.4k (2021: £88.1k) and again included £42k to the Margaret Clitherow Trust and £30k to St Anne’s School in Vauxhall.
The result for the year was net expenditure before investment gains/losses of £234.9k (2021: net income of £163.1k). The year saw substantial investment losses. These amounted to £2.43m, which completely reversed the significant gain in 2021 of £2.41m.
Overall, there was a net expenditure of £2.66m (2021: net income of £2.57m). As a result, the reserves of the Charity fell to just over £25.0m (2021: £27.7m).
## **Investment policy and performance**
The performance of the portfolio and the charity’s investment strategy are reviewed by the Trustees who meet at least three times a year with the investment manager, accountant and advisors. At these meetings, the Trustees ensure that the fund is managed in accordance with their written guidelines and with the religious and ethical principles of the charity. The ethical restrictions prohibit any investment in companies with significant interest in armaments, gambling, tobacco, pornography, child labour and known injustices in the third world. The target set for the fund manager is to achieve a certain return of both income and capital growth with no more than a moderate level of risk.
Investments generated a total return of approximately -8.62% (2021: +13.5%). This was slightly below the benchmark set for the fund managers (which is based on a composite of investment indices for each of the main sectors in which the charity holds investments) but above the averages quoted for the charity sector for the year. The return was satisfactory in the view of the Trustees and justified their decision to make no significant changes to investment strategy last year.
16
**SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **RESERVES POLICY AND FINANCIAL POSITION**
At the end of the year to 31 December 2022 the total funds of the charity stood at £25.04m. Of this, £4.4m is represented by fixed assets required for the support of the activities and the administration of the charity. A designated fund has been established for this and for financing the charity’s commitment to provide for the needs of sisters in sickness and old age. Calculations based on actuarial life expectancy tables indicate that a fund of in the region of £13m is required to provide for this commitment of the charity. The level of the fund was reviewed during 2021 and it was decided that the level was adequate but not excessive provision for the charity’s commitment. The level will continue to be kept under review and further designations, or releases from the fund, will be considered as circumstances and needs change.
In addition, the Trustees have set aside a sum of £2.5m as a Charitable Projects Fund. This is intended to provide funding for various charitable activities which the Trustees will support financially but which will tend not to have direct input from the sisters of the Province. This is considered to be the most effective way of pursuing the aims of the charity in view of the fact that the membership of the Province is aging and the sisters are increasingly unable to work directly in pursuit of the charity’s purposes.
Types of project under consideration include:
- Support of the travelling community in the UK;
- Volunteer work in connection with the congregation’s mission in the Philippines;
- Support of homeless young people in the Philippines;
- Healthcare provided by the congregation in India.
- Support for local catholic school.
- Setting up accommodation for Asylum Seekers
The balance of over £5.1m in the General Funds at just over five years’ expenditure is in excess of the Trustees’ normal target range of holding one to two years’ expenditure in reserve. However as noted above, expenditure levels are likely to rise. The Trustees are also mindful of the likely decline in both investment values and investment income in later years, as a result of the wider economic and social pressures that have become evident over the last year or so, with, for example, rising inflation and increasing levels of poverty. The Trustees, therefore, will continue to monitor and assess the level of the Charity's reserves against future commitments and spending plans as well as the needs that the charity and the wider Congregation might meet.
17
## **SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **RISK MANAGEMENT**
The trustees undertake an annual review of the principal risks and uncertainties that the charity faces categorising the risks between those affecting the governance and management of the charity, operational risks, financial risks, reputational risks and those which occur because of circumstances outside of the charity's control such as changes in government policy, laws and regulations. They regularly review the measures already in place, or needing to be put in place, to establish policies, systems and procedures to mitigate those risks identified in the annual review and ensure that action is taken to implement changes to those policies, systems and procedures should they be needed to minimise or manage any potential impact on the charity if those risks materialise. Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks. The key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated.
## • **Financial Risks**
Aware of our lack of expertise in the area of finance we have employed a team of financial advisors to manage our investment portfolio. We are aware that much of our income now comes from our investments and so it is essential that these are well managed. The volatility of world markets and the possibility of global financial crises naturally causes us some concern as well as the ongoing crises within our own country such as dealing with the aftereffects of the pandemic. For this reason, we have opted for a portfolio that is diversified and which hopefully can weather any financial storms.
An analysis of the age profile of the members of the Institute shows that the average age in the Province at 31 December 2022 was 84 years. Although the age range is high among our sisters, the trustees see the charity continuing into the future. It will be necessary, however, to discern which ministries take priority. It is hoped that the trustees will continue to develop the mission of serving refugees, asylum seekers and travellers in the UK as well as educational projects and ministry to the aged and the marginalised in line with our Chapter priorities.
The trustees are aware that there is both a moral and legal obligation to care for the older members. None of the members have resources of their own as all earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant. As the age profile increases, so too does the need to provide care for the sisters. Key elements of the management of this risk are:
- (a) ensuring that the charity has the available financial resources to finance this care both now and in the years ahead by setting aside assets in a designated fund, the value of which has been based on actuarial principles;
- (b) ensuring that processes are in place to review regularly the ministries and needs of individual sisters encouraging those who need it to take on less demanding ministries and for identifying those who need extra care and help.
- (c) Aware that we have been heavily involved in ministries with children and vulnerable adults over the years it is essential for us to know that if a case should emerge that would involve us in a legal process and financial pay out that we are covered for such a scenario in our insurance. This we have in place.
## • **Risks involved in Grant Making**
As Trustees we are very aware that we must avoid exposing our charity’s resources, its reputation or the wellbeing of its beneficiaries to inappropriate risk and that it is essential to identify and consider risks in relation to a particular grant proposal and respond to them proportionately, as risks will vary in their significance from case to case. As the number of our members in this country decreases we will most likely be using our financial assets to assist other charities and groups that are in line with our own charitable purposes and therefore it is essential that we have a strategy for assessing together the risks involved whilst seeking good legal and financial advice as we are doing at present.
Our grant making policy is renewed by our trustees on a regular basis.
18
## **SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **RISK MANAGEMENT (continued)**
## • **Risks involved in Grant Making (continued)**
The vast majority of donations sent overseas are to fund projects administered directly by members of our own Congregation. Whether or not the funds are used here in Great Britain or overseas, the trustees always ensure that they are fully briefed on the various projects and familiar with the work of a potential recipient of funds, that funds are transferred via bank transfer, that proof of receipt is obtained and that, wherever possible (and always in the case of monies sent overseas), a full written report of how the monies have been utilised and applied is obtained from the recipient.
## • **Attack from Cyber Criminals**
We are now more fully aware of the magnitude that an attack from cyber criminals could have on small charities like ours and we are trying to put in place more training for our staff and members in order to manage our website data collection activities and build new processes to assist us in this management.
We are aware that we have not followed through on this training and are presently seeking advice on where we might go for such training.
## • **Disaster Recovery Planning**
Conscious of the need to plan for a major disaster occurring, Trustees will take time in the forthcoming year to identify the various scenarios which could arise and then begin the construction of a recovery plan for the Charity.
One scenario, for example, that might be extremely difficult for us to manage would be the inability of our present bursar to continue in her role. We have already started to mitigate this risk by employing one of our Lay Holy Family members who has expertise in finance to work alongside her and gradually take more and more responsibility for the day-to-day management of our financial activity. All proper protocols are in place for this.
19
**SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **SAFEGUARDING POLICY**
The Trustees recognise the absolute necessity of ensuring the protection and safety of all those the charity serves. This means that all members who are in any kind of ministry in Great Britain have had to obtain clearance from the Criminal Records Bureau. The sisters living in the Republic of Ireland are also aligned with the Irish Safeguarding Authorities (National Board for Safeguarding Children in the Catholic Church in Ireland (NBSCCCI)).
The Trustees are committed to implementing all policies and procedures of the Catholic Safeguarding Advisory Service (CSAS). All our communities have now become aligned with Religious Life Safeguarding Service Theresa Blythin our part-time Sector Secretary is our local Safeguarding Officer. Our safeguarding policies and procedures are regularly reviewed. The Sister-in- Charge and the Safeguarding Officer take part in regular updates and training, including zoom sessions and have attended training seminars.
The Safeguarding Policy of the Sisters and procedure applies to all workers within the SISTERS OF THE HOLY FAMILY OF SAINT EMILIE - Religious, Lay, Voluntary or Employee, regardless of their role or the activities they undertake.
The Trustees of the SISTERS OF THE HOLY FAMILY OF SAINT EMILIE have a duty to maintain appropriate governance and oversight of Safeguarding in line with this policy and national guidelines. Certain functions of the Board will be delegated to congregation or staff members, as indicated below.
## The Legal Representative of the Animation Team
The Legal representative of the Animation Team is responsible for ensuring appropriate policy, procedures and best practice are in place for the effective delivery of safeguarding, including any related due diligence checks. Certain functions of the LR will be delegated as indicated below.
## The Safeguarding Lead
The Safeguarding Lead has direct oversight of SISTERS OF THE HOLY FAMILY OF SAINT EMILIE safeguarding policy and guidance, including management and oversight of documentation, case progression/management and the secure, legally compliant storage of safeguarding reports and related material as well as oversight of the relationship with and input on the work of the RLSS.
## All other roles
All members and staff have an obligation to ensure they know how to respond to safeguarding concerns by being familiar with the content of this policy and the procedure contained within it and any other associated policies/procedures.
As we still have sisters living in community who are now quite elderly, we are aware that we need to develop our policy on the care and treatment of vulnerable adults.
All safeguarding representatives will ensure that any allegations of abuse are promptly reported to the Charities Commission and that the statutory authorities which may become involved are given the fullest support. In England we use the CSAS Manual ‘Integrity in Ministry’ as a support for our Safeguarding Policy.
The Trustees continue to promote the study of this document produced by the Conference of Religious in order that the communities are familiar with its content and are able to make full use of it in our training and Safeguarding Procedures.
20
**SISTERS OF THE HOLY FAMILY**
**TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FUNDRAISING POLICY**
The charity aims to achieve best practice in the way in which it communicates with donors and other supporters.
The charity takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time.
The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service.
During the year, the charity received no complaints about its fundraising activities (2021: none).
## **DATA PROTECTION POLICY**
The Charity registered with DPR on 1[st] May 2018.
## **Our Data protection principles:**
The Charity is committed to processing data in accordance with its responsibilities under the GDPR.
Article 5 of the GDPR requires that personal data shall be:
- a. processed lawfully, fairly and in a transparent manner in relation to individuals.
- b. collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes; further processing for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes shall not be considered to be incompatible with the initial purposes;
- c. adequate, relevant and limited to what is necessary in relation to the purposes for which they are processed;
- d. accurate and, where necessary, kept up to date; every reasonable step must be taken to ensure that personal data that are inaccurate, having regard to the purposes for which they are processed, are erased or rectified without delay;
- e. kept in a form which permits identification of data subjects for no longer than is necessary for the purposes for which the personal data are processed; personal data may be stored for longer periods insofar as the personal data will be processed solely for archiving purposes in the public interest, scientific or
- f. historical research purposes or statistical purposes subject to implementation of the appropriate technical and organisational measures required by the GDPR in order to safeguard the rights and freedoms of individuals; and processed in a manner that ensures appropriate security of the personal data, including protection against unauthorised or unlawful processing and gains
Any groups who are attached to the Holy Family Sisters such as Lay Holy Family Members have given permission for their names, emails and addresses to be safely stored in our system with the assurance that they will not be passed on to any individuals or companies.
21
**SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **ETHICAL POLICY**
The members of the charity take seriously their commitment to peace with justice for all people and to care of the environment. The Trustees, therefore, have developed an explicit ethical policy for investment which is in keeping with charity law while avoiding, where possible, investments which have specific negative social or environmental impact, or conflict with Church teaching. This year we have spent a great deal of time deliberating and carrying out further research with regards to our investments in fossil fuel companies. We had hoped that this year would see an end to us holding any shares in fossil fuel companies but as yet we have not been able to implement this action but hope that we are very close to accomplishing this action.
Fund managers observe these restrictions while maintaining a strategy to maximise total returns, income and capital within acceptable levels of risk.
An active, practical concern for the environment and protection of the planet forms a basic part of the members lives.
The Charity has an auto enrolment pension scheme for all employees.
## **FUTURE PLANS FOR THE CHARITY**
Our financial resources are still such that we wish to make greater use of them and of our properties for public benefit. We continue our research into ways of accomplishing this and naturally aim to align ourselves with groups and projects that are in keeping with our own particular charism. The following are some actions and projects that we hope to take and support in the coming year:
- Satisfied with the way our project with Asylum Seekers is flourishing we are happy to continue to give an annual contribution of £80,000 for the next three years which is renewable.
- We wish to continue our support to the Margaret Clitherow Project. This Charity aims to serve marginalized communities in the U.K. This funding will assist them in the pastoral support they give to clients, their catechetical work as well as their training programmes and transport costs.
- Recognising that the modified property in Stockwell could in future years become too large for the community we have begun to consider how we might share the property whilst remaining resident in one section of the house. Plans have now been drawn up and the local authorities approached for planning permission which is proving a bit complex.
- Considering the financial situation of our sisters throughout the world who are trying to carry out their mission to the poor and marginalised in very difficult circumstances we intend to respond to their future request for assistance as best we can. The Trustees have now committed to sending £100,000 and hopefully will be in a position to increase this to £150,000 maximum.
- In order to reduce our carbon footprint we are considering installing solar panels to our roof. We are also considering how we might look at alternatives to our present heating systems which may well need to be replaced in line with government policies. We are presently looking at various greener alternatives. Heat pumps we are told can give you 50-60% reduction in a household’s greenhouse gas pollution footprint and shouldn’t increase the energy bill.
- We continue to develop our inner - city roof garden that will attract bees and butterflies to assist pollination and to grow plants that will help to improve air quality in the locality.
- Having visited Bethlehem University on several occasions and learned of the financial difficulties that many students face we have made a decision to sponsor a student for a period of four years. This will go through Pilgrimage People who already have many strong ties with the University and have already set up other bursaries successfully.
22
## **SISTERS OF THE HOLY FAMILY**
## **TRUSTEES REPORT (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FUTURE PLANS FOR THE CHARITY (continued)**
- Youth Project in Knock will be financed to the value of £5,000 per annum. This project is for the spiritual and social development of local youth.
- Lead a parish pilgrimage in the footsteps of Saint Paul after a period of study on St. Paul and his writings and mission.
- Work with the 2 local catholic primary schools known to us in London on a tree planting project.
## **TRUSTEES’ RESPONSIBILITIES**
The Trustees of the charity are required to prepare for each financial year accounts which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing those financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that this basis applies.
The Trustees are responsible for keeping proper accounting records which disclose the reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with statutory requirements and with the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
They are also responsible for identifying the major risks to which the charity is exposed, reviewing those risks and establishing systems to mitigate them.
- So far as each of the Trustees is aware at the time the report is approved:
- there is no relevant audit information of which the charity’s auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of this information.
The accounts accompanying this report comply with current statutory requirements and the Trust Deed and are the accounts for the Charitable Trust in which the assets of the Sisters of the Holy Family in the English Province are held.
The Trust is governed by a Deed dated 1 May 1964 as amended by a Charity Commission scheme of 12 February 1997 and is registered with the Charity Commission. The Charity Registration Number is 233108.
The Trustees wish to record their recognition of the professionalism and commitment of all their employees and the individual members of the Congregation. Their dedication and commitment to the Charity is deeply appreciated.
Approved by the trustees and signed on their behalf by:
## Irena Madej
……………………………………………….
Sr Irena Madej Trustee
Date: 27 October 2023
23
## **Independent auditor’s report to the trustees of Sisters of the Holy Family**
## **Opinion**
We have audited the financial statements of Sisters of the Holy Family for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of the charity’s net movement in funds for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the charity; or
- the charity’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit;
## **Responsibilities of trustees for the financial statements**
As explained more fully in the trustees’ responsibilities statement set out on page 24, the trustee are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
24
## **Independent auditor’s report to the trustees of Sisters of the Holy Family (continued)**
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charity and the sector in which it operates, we identified that the principal risks of noncompliance with laws and regulations related to regulatory requirements of the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.
We evaluated management’s opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and incorrect application of the income recognition policy for donation and legacies income. Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators;
- Discussions with management;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Review of minutes of meetings to identify instances of fraud or irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates, including review of how donation or legacies income has been recognised at the year end.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.
Haysmacintyre LLP Statutory Auditors 10 Queen Street Place London EC4R 1AG
## Date: 27. October 2023
Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
25
**SISTERS OF THE HOLY FAMILY**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|||**2022**|**2021**|
|---|---|---|---|
||**Notes**|**£**|**£**|
|**INCOME from**||||
|Donations and legacies|1|194,369|194,397|
|Investments|2|527,194|499,331|
|Gain on Sale of Fixed Assets|3|-|351,687|
|Gain on conversion of foreign currencies||28,757|-|
|||------------------------|------------------------|
|**Total Income**||750,320|1,045,415|
|||------------------------|------------------------|
|**EXPENDITURE on**||||
|**Cost of raising funds**||||
|- Investment management fees||84,668|89,317|
|**Charitable activities**|4|||
|- Support of members of the Congregation and their ministry||728,502|622,901|
|- Donations and grants paid||172,045|170,092|
|||------------------------|------------------------|
|**Total expenditure**||985,215|882,310|
|||------------------------|------------------------|
|**Net (expenditure) before gains/(losses) on investments**||(234,895)|163,105|
|**Other recognised gains and losses**||||
|Net gains on investments||(2,427,449)|2,410,029|
|||------------------------|------------------------|
|**Net (expenditure)/income and net movement in funds for the year**||(2,662,344)|2,573,134|
|Total funds brought forward||27,701,721|25,128,587|
|||------------------------|------------------------|
|**Total funds carried forward at 31 December 2022**||£25,039,377|£27,701,721|
|||============|============|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The accompanying notes form part of these financial statements.
All funds are unrestricted funds.
26
**SISTERS OF THE HOLY FAMILY**
**BALANCE SHEET**
## **AS AT 31 DECEMBER 2022**
||||**2022**||**2021**|
|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|
|**FIXED ASSETS**||||||
|Tangible fixed assets|10||4,399,445||4,470,854|
|Investments|11||19,544,954||22,055,727|
||||---------------------||---------------------|
||||23,944,399||26,526,581|
|**CURRENT ASSETS**||||||
|Debtors|12|27,409|||-|
|Cash||1,636,035||1,802,096||
|||--------------------||--------------------||
|||1,663,444||1,802,096||
|**CREDITORS:**Amounts falling||||||
|due within one year|13|(133,372)||(126,285)||
|||--------------------||--------------------||
|**NET CURRENT ASSETS**|||1,530,072||1,675,811|
|**CREDITORS:**Amounts falling||||||
|due after more than one year|13||(435,094)||(500,671)|
||||-----------------------||-----------------------|
|**NET ASSETS**|||£25,039,377||£27,701,721|
||||===========||===========|
|**FUNDS**||||||
|General unrestricted funds|||5,139,932||7,730,867|
|Designated|14|||||
|- Fixed Assets||4,399,445||4,470,854||
|- Retirement Fund||13,000,000||13,000,000||
|- Charitable Projects Fund||2,500,000||2,500,000||
|- Building Fund||-|||-|
|||---------------------||---------------------||
||||19,899,445||19,970,854|
||||-----------------------||-----------------------|
||||£25,039,377||£27,701,721|
||||===========||===========|
Approved by the Trustees on 27 October 2023 and signed on their behalf by
## Irena Madej
Sister Irena Madej Trustee
The accompanying notes form part of these financial statements.
27
**SISTERS OF THE HOLY FAMILY**
## **CASH FLOW STATEMENT**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|||**2022**|**2021**|
|---|---|---|---|
||**Notes**|
**£**|**£**|
|**Cash flows from Operating Activities**||||
|Net cash outflow from operating activities|**A**|**(776,579)**|**(358,635)**|
|||-------------------|-------------------|
|**Cash flows from investing activities**||||
|Dividends and interest from investments||527,194|499,331|
|Payments to acquire fixed assets||-|(191,562)|
|Receipts from sales of fixed assets||-|598,687|
|Payments to acquire investments||(6,129,192)|(4,072,486)|
|Receipts from sales of investments||6,212,516|4,160,330|
|Receipts on maturity of Deferred Annuity Contract||-|273,006|
|||--------------------|--------------------|
|**Net cash provided by/(used in) investing activities**||**610,518**|**1,267,306**|
|||--------------------|--------------------|
|**Change in cash and cash equivalents in year**|**C**|**(166,061)**|**908,671**|
|Cash and cash equivalents at 1 January 2022||1,802,096|893,425|
|||--------------------|--------------------|
|Cash and cash equivalents at 31 December 2022|**B**|**£1,636,035**|**£1,802,096**|
|||===========|===========|
|**Notes to the Cash Flow Statement**||||
|**A. Reconciliation of net movement in funds to net cash flow from operating activities**||||
|||**2022**|**2021**|
|||**£**|**£**|
|**Net movement in funds**||||
|**(as per the Statement of Financial Activities)**||(2,662,344)|2,573,134|
|**Adjustments for**||||
|Losses /(Gains) on investments||2,427,449|(2,410,029)|
|Surplus on disposal of fixed assets||-|(351,687)|
|Dividends and interest from investments||(527,194)|(499,331)|
|Depreciation||71,409|71,409|
|(Increase)/Decrease in debtors||(27,409)|319,869|
|(Decrease) in creditors||(58,490)|(62,000)|
|||--------------------|--------------------|
|**Net cash (used in) operating activities**||(776,579)|(358,635)|
|||===========|===========|
|**B. Analysis of cash and cash equivalents**||||
|Cash at bank and in hand||**£1,636,035**|**£1,802,096**|
|||===========|===========|
|**C. Analysis of changes in net cash funds**||||
|**At 1 January**||**Cashflows**|**At 31 December**|
|**£**||**£**|**£**|
|1,802,096||(166,061)|1,636,035|
|--------------------||--------------------|--------------------|
|£1,802,096||£(166,061)|**£1,636,035**|
|===========|===========||===========|
28
**SISTERS OF THE HOLY FAMILY**
## **PRINCIPAL ACCOUNTING POLICIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.
## **Statement of Compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) – Charites SORP (FRS102) (second edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.
The charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## **Critical accounting estimates and areas of judgement**
Preparation of the accounts requires the Trustees to make significant judgements and estimates that affect the application of the charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The items in the accounts where significant judgements and estimates have been made are:
- estimating the economic useful life of tangible fixed assets.
- The discount rate applied to the long-term grant commitment to the Jesuits Refugee Service
## **Assessment of going concern**
The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.
The Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 December 2023, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the Trustees’ Report for more information).
## **Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken. To the extent that monies received for restricted purposes are fully utilised during the year, that is with no brought forward or carry forward balance of restricted funds, they are not shown as restricted in the Statement of Financial Activities.
29
**SISTERS OF THE HOLY FAMILY**
**PRINCIPAL ACCOUNTING POLICIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Income recognition**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance of the provision of care services service it is deferred until the criteria for income recognition are met.
In accordance with the Charities SORP FRS102, volunteer time is not recognised.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## **Expenditure recognition and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds comprise fees paid in respect of fund management advice in relation to the charity’s portfolio of quoted investments, which is managed under a discretionary management agreement.
- Expenditure on charitable activities includes the costs of running the charity’s convents as well as all other costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. These costs comprise charitable grants and donations, direct and support costs in respect to the support of members of the Congregation and their ministry. It also includes governance costs.
- Employment benefits, including holiday pay, are recognised in the period in which they are earned. Termination benefits are recognised in the period in which the decision is made and communicated to the relevant employee(s).
Charitable grants and donations are made where the trustees consider there is real need following a review of the details of each particular case and normally comprise single year payments rather than multi-year grants. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but unpaid at the period end. The provision of a multi-year grant is recognised where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charity that would permit the charity to avoid making the future payments, settlement is probable. Such grants are recognised at their discounted present value where the effect of the discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the charity.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **Allocation of support and governance costs**
Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment. Support costs are allocated to activities on the basis of estimated usage and are currently entirely allocated to Support of Members of the Congregation and their ministry.
30
**SISTERS OF THE HOLY FAMILY**
## **PRINCIPAL ACCOUNTING POLICIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Tangible fixed assets**
Tangible fixed assets are stated at cost less accumulated depreciation. Individual fixed assets costing £2,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows:
||Annual rate|
|---|---|
|Freehold land|Nil|
|Freehold buildings|2%|
|Fixtures and fittings|10%|
|Motor vehicles|25%|
## **Financial Instruments**
The charity only holds financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## _Investments_
Investments are a form of basic financial instrument and are initially shown in the financial statements at market value. Movements in market value are shown as unrealised gains and losses in the financial statements.
## _Debtors_
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
## _Cash at bank and in hand_
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Deposits for more than three months and up to one year have been disclosed as short-term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.
## _Creditors and provisions_
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Services provided by members of the Congregation**
For the purposes of these accounts, no value has been placed on administrative and other services provided by the members of the Congregation.
## **Foreign currencies**
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.
## **Pension contributions**
Contributions in respect of the charity’s defined contribution pension scheme are charged to the statement of financial activities when they are payable to the scheme. The charity’s contributions are restricted to the contributions disclosed in note 6. There were no outstanding contributions at the year end. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.
31
**SISTERS OF THE HOLY FAMILY**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|**1.**|**DONATIONS AND LEGACIES**|||
|---|---|---|---|
|||**2022**|**2021**|
|||**£**|**£**|
||Sisters' salaries and pensions|187,817|186,732|
||Furlough support|-|5,399|
||Other donations|6,552|2,266|
|||--------------------|--------------------|
|||£194,369|£194,397|
|||==========|==========|
|**2.**|**INVESTMENT INCOME**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Income from listed securities and cash held by Brokers|524,568|499,221|
||Bank and other interest|2,626|110|
|||--------------------|--------------------|
|||£527,194|£499,331|
|||==========|==========|
|**3.**|**SURPLUS ON DISPOSAL OF TANGIBLE FIXED ASSETS**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Proceeds (net of costs)|-|598,687|
||Net book value|-|(247,000)|
|||--------------------|--------------------|
||Gain on disposal of freehold property|£-|£351,687|
|||==========|==========|
32
## **SISTERS OF THE HOLY FAMILY**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|**4.**|**EXPENDITURE ON CHARITABLE ACTIVITIES**|||
|---|---|---|---|
|||**2022**|**2021**|
|||**£**|**£**|
||**Support of members of the Congregation and their ministry**|||
||Sisters' living and ministry expenses|447,330|373,939|
||Premises costs|55,799|59,109|
||Charitable Projects (Music & Education)|1,800|1,020|
||Depreciation|71,409|71,409|
||Other support costs|129,664|93,974|
||Governance costs (note 4)|22,500|23,450|
|||--------------------|--------------------|
|||**728,502**|**622,901**|
|||------------------|------------------|
||**Donations and grants**|||
||**Support of the overseas mission of the Congregation**|||
||Generalate|30,000|30,000|
||Indian Mission|-|2,000|
||Bolivia Mission|-|20,000|
||Lebanon Mission|50,000|30,000|
||France Mission|2,636|-|
|||--------------------|--------------------|
|||82,636|82,000|
|||------------------|------------------|
||**Grants to other organisations**|||
||Margaret Clitherow Trust|42,000|41,000|
||St Anne's School|30,000|30,000|
||Clergy Support Group|2,000|-|
||Jesuit Refugee Service|14,423|16,259|
||General alms & donations|986|833|
|||--------------------|--------------------|
|||89,409|88,092|
|||--------------------|--------------------|
||Total Donations and grants|**172,045**|**170,092**|
|||--------------------|--------------------|
||**Total Charitable Expenditure**|**£900,547**|**£792,993**|
|||==========|==========|
33
## **SISTERS OF THE HOLY FAMILY**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|**5.**|**GOVERNANCE COSTS**|||
|---|---|---|---|
|||**2022**|**2021**|
|||**£**|**£**|
||Auditors remuneration|||
||- Statutory audit|14,460|14,270|
||Other professional fees|8,040|9,180|
|||--------------------|--------------------|
|||£22,500|£23,450|
|||==========|==========|
|**6.**|**NET MOVEMENT IN FUNDS**|||
|||**2022**|**2021**|
|||**£**|**£**|
||This is stated after charging/(crediting):|||
||Exchange (gain)/loss|(28,757)|38,953|
||Staff costs (note 7)|110,917|84,162|
||Auditors remuneration|||
||- Statutory audit|14,460|14,270|
||Depreciation|71,409|71,409|
|||===========|===========|
## 7. **STAFF COSTS AND REMUNERATION OF KEY PERSONNEL**
Staff costs are minor as the activities of the Charity are conducted by Sisters of the Society who receive no remuneration.
Expenditure on charitable activities includes Domestic wages as follows:
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Wages and salaries|104,906|76,658|
|Social security costs|2,960|5,597|
|Other pension costs|3,051|1,907|
||----------------------|----------------------|
||£110,917|£84,162|
||===========|===========|
||**No**|**No**|
|The average number of employees in the year was:|**6**|**6**|
||===========|===========|
The number of employees whose emoluments exceeded £60,000 was nil (2021: nil).
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis solely comprises the trustees.
The total remuneration of (including taxable benefits but excluding employer's pension contributions) of the key management personnel was nil (2021: nil).
34
**SISTERS OF THE HOLY FAMILY**
**NOTES TO THE FINANCIAL STATEMENTS (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **8. TRUSTEES' EXPENSES & REMUNERATION AND TRANSACTIONS WITH TRUSTEES**
The Trustees of the Charity are also members of the Congregation and as such have taken vows of poverty under which they have renounced all personal rights to income and capital. The Charity provides for the essential needs of all members of the Congregation within the Province.
The living costs of the four Trustees are therefore borne by the Charity.
## **9. TAXATION**
The Sisters of the Holy Family is a registered charity and therefore is not liable to Income Tax or Capital Gains Tax on income or gains derived from its charitable activities as it falls with the various exemptions available to registered charities.
|**10.**|**TANGIBLE FIXED ASSETS**|**Freehold land**|**Fixtures &**|**Motor**||
|---|---|---|---|---|---|
|||**and building**|**Fittings**|**Vehicles**|**Total**|
|||**£**|**£**|**£**|**£**|
||**COST OR VALUATION**|||||
||At 1 January 2022|5,261,895|53,885|14,176|5,329,956|
||Additions|-|-|-|-|
||Disposals|-|-|-|-|
|||----------------------|---------------------|---------------------|----------------------|
||At 31 December 2022|5,261,895|53,885|14,176|5,329,956|
|||---------------------|--------------------|--------------------|---------------------|
||**DEPRECIATION**|||||
||At 1 January 2022|796,167|48,759|14,176|859,102|
||Charge for the year|67,901|3,508|-|71,409|
||On disposal|-|-|-|-|
|||-------------------|--------------------|-------------------|--------------------|
||At 31 December 2022|864,068|52,267|14,176|930,511|
|||-------------------|--------------------|-------------------|--------------------|
||**NET BOOK VALUE**|||||
||At 31 December 2022|£4,397,827|£1,618|£-|£4,399,445|
|||===========|==========|==========|===========|
||At 31 December 2021|£4,465,728|£5,126|£-|£4,470,854|
|||===========|==========|==========|===========|
Net book value at 31 December 2022 represents Fixed Assets used for direct charitable purposes.
35
**SISTERS OF THE HOLY FAMILY**
**NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|**11.**|**INVESTMENTS**|||**Total**|**Total**|
|---|---|---|---|---|---|
|||||**2022**|**2021**|
||||**£**|**£**
**£**|**£**|
||**Quoted investments**|||||
||Balance at 1 January 2022|||22,055,727|19,944,646|
||Additions|||6,129,192|4,072,486|
||Disposals|||||
||Proceeds|(6,212,516)||
(4,160,330)||
||(Losses)/Gains|(911,956)||
146,634||
|||------------------------||
------------------------||
|||||(7,124,482)|(4,013,696)|
||Unrealised (loss)/gain|||(1,515,493)|2,052,291|
|||||------------------------|------------------------|
|||||£19,544,954|£22,055,727|
|||||============|============|
||Listed on a UK stock exchange|||19,222,978|21,429,952|
||Bank deposits|||321,976|625,775|
|||||------------------------|------------------------|
||Balance at 31 December 2022|||£19,544,954|£22,055,727|
|||||============|============|
||The cost of the quoted investments was £16,983,725||(2021:|£15,327,486)||
||Quoted investments comprise:-|||||
|||||**2022**|**2021**|
|||||**£**|**£**|
||Fixed interest securities|||2,607,134|2,498,223|
||UK Equities|||9,984,607|11,440,632|
||Overseas investments - Investment and Unit trusts|||6,631,237|7,491,097|
||Cash|||321,976|625,775|
|||||------------------------|------------------------|
|||||£19,544,954|£22,055,727|
|||||============|============|
36
**SISTERS OF THE HOLY FAMILY**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
|**12.**|**DEBTORS**|||
|---|---|---|---|
|||**2022**|**2021**|
|||**£**|**£**|
||Prepayments and accrued income|27,409|-|
||Other debtors|-|-|
|||------------------------|------------------------|
|||£27,409|£-|
|||**============**|**============**|
|**13a)**|**CREDITORS: Amounts falling due within one year**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Accrued Grants - Jesuit Refugee Service|80,000|80,000|
||Accruals and deferred income|50,254|45,785|
||Taxation & social security|3,118|500|
|||------------------------|------------------------|
|||£133,372|£126,285|
|||**============**|**============**|
|**13b)**|**CREDITORS: Amounts falling due after more than one year**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Accrued Grants - Jesuit Refugee Service|435,094|500,671|
|||------------------------|------------------------|
|||£435,094|£500,671|
|||**============**|**============**|
37
**SISTERS OF THE HOLY FAMILY**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **14. DESIGNATED FUNDS**
The trustees have designated funds out of the unrestricted funds for specific purposes as follows:
## **Fixed Assets Fund**
In order to fulfil its charitable objectives the Charity needs a number of properties and other fixed assets. These assets, although they are for unrestricted purposes, cannot be realised without undermining the Charity's work and the trustees therefore feel that it is appropriate to reflect the investment in fixed assets by means of a designated fund. Depreciation is charged against the fund. Transfers are made to reflect the net investment/dis-investment in fixed assets during the year.
## **Retirement Fund**
A fund has been designated to provide for the Charity's commitment to provide for the retirement and care in old age and sickness of its members. Transfers from general funds are credited to this fund. During 2022, the fund was re-assessed in the light of current economic circumstances and financial returns. There are 18 professed Sisters to provide for and estimates indicate a fund of at least £13million is required to finance the Charity's commitment to provide care for its elderly members after taking account of their occupational pension rights. This is unchanged from the previous level calculated as being required. The trustees will continue to keep the level of the designation under review with a view to releasing funds for other purposes the number of sisters falls.
## **Charitable Projects Fund**
The Trustees have set aside this fund in order to finance giving to charitable projects that they wish to support but for which they lack the personnel. The fund will provide both capital and income. The Trustees are currently identifying the projects that they will support and the funds that they can commit to each of these. Further details are set out in the Future Plans section of the Trustees’ Report.
||**Balance**|**Net Income/**||**Balance**|
|---|---|---|---|---|
||**1 January 2022**|**(Expenditure)**|**Transfers**|**31 December 2022**|
|**Movements - Current year**|**£**|**£**|**£**|**£**|
|Fixed asset fund|4,470,854|(71,409)|-|4,399,445|
|Retirement fund|13,000,000|-|-|13,000,000|
|Charitable Projects Fund|2,500,000|-|-|2,500,000|
||------------------------|--------------------|----------------------|------------------------|
||£19,970,854|£(71,409)|£-|£19,899,445|
||=============|==========|===========|=============|
||**Balance**|**Net Income/**||**Balance**|
||**1 January 2021**|**(Expenditure)**|**Transfers**|**31 December 2021**|
|**Movements - Current year**|**£**|**£**|**£**|**£**|
|Fixed asset fund|4,597,701|(318,409)|191,562|4,470,854|
|Retirement fund|13,000,000|-|-|13,000,000|
|Charitable Projects Fund|2,500,000|-|-|2,500,000|
||------------------------|--------------------|----------------------|------------------------|
||£20,097,701|£(318,409)|£191,562|£19,970,854|
||=============|==========|===========|=============|
38
**SISTERS OF THE HOLY FAMILY**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **15. ANALYSIS OF NET ASSETS**
## **Fund Balances at 31 December 2022**
were represented by:
|**General**
**Fund**
**£**
Tangible fixed assets
-
Investments
4,244,954
Current assets
1,463,444
Current liabilities
(568,466)
------------------------
£4,399,445
===========|**Designated Funds**
**Fixed**
**Assets**
**Retirement**
**Fund**
**Charitable**
**Projects**
**Fund**
**Total**
**£**
**£**
**£**
**£**
4,399,445
-
-
4,399,445
-
13,000,000
2,300,000
19,544,954
-
-
200,000
1,663,444
-
-
-
(568,466)
-------------------------
-------------------------
----------------------
-------------------------
£13,000,000
£2,500,000
£-
£25,039,377
===========
============
==========
===========|
|---|---|
## **Fund Balances at 31 December 2021**
were represented by:
|**General**
**Fund**
Tangible fixed assets
-
Investments
6,755,727
Current assets
1,602,096
Current liabilities
(626,956)
-------------------------
£4,470,854
===========|**Designated Funds**
**Fixed**
**Assets**
**Retirement**
**Fund**
**Charitable**
**Projects**
**Fund**
**Total**
**£**
**£**
**£**
**£**
4,470,854
-
-
4,470,854
-
13,000,000
2,300,000
22,055,727
-
-
200,000
1,802,096
-
-
-
(626,956)
----------------------
----------------------
-------------------------
-------------------------
£13,000,000
£2,500,000
£-
£27,701,721
===========
============
==========
===========|
|---|---|
39